Players get three option years. That is, three years in which they are on the 40 man roster, but not on the 25 man roster for at least part of a MLB season.
If a player has fewer than five years of professional experience, he can be sent to the minors in a fourth season without being subject to waivers.
Once the player is out option years, if he gets "optioned" to the minors, he must clear irrevocable waivers. When a player is put on irrevocable waivers, any team can claim him. If no team claims him, the player is assigned to the minor leagues. However, if the player has five years or more of major league service, he can refuse the option to the minors and become a free agent.
More on waivers:
http://en.wikipedia.org/wiki/Major_
League_Baseball_transactions
George Foster and Mike Schmidt (especially Schmidt) had far better swings than Francisco does. Juan seems to try so hard to hit the ball to Kentucky that he appears (at least to me) to always be way off balance. Schmidt (if I remember correctly) had a nice, quick, compact swing.
Personally, if it's one or the other, I tend to think that Chris Valaika has better prospects for success than Franciscio, although CV may end up at 2nd base if/when Phillips leaves. I think Frazier might be a better long term option than Francisco too.